Local Government Finance Bill (HL Bill 44)

(6) The authority must make a payment to the Secretary of State of an
amount equal to the difference.

(7) Where the original calculations did not show that a relevant
authority was to make a payment to the Secretary of State, but the
5revised calculations show that the authority is to make a payment
to the Secretary of State—

(a) the authority must make that payment to the Secretary of
State, and

(b) the authority must make a payment to the Secretary of
10State of an amount equal to the amount of the payment
shown by the original calculations as falling to be made by
the Secretary of State to the authority.

(8) Sub-paragraph (9) applies where—

(a) a payment the revised calculations show as falling to be
15made by a relevant authority to the Secretary of State is less
than that shown as falling to be made by the original
calculations, or

(b) a payment the revised calculations show as falling to be
made by the Secretary of State to a relevant authority
20exceeds that shown as falling to be made by the original
calculations.

(9) The Secretary of State must make a payment to the authority of an
amount equal to the difference.

(10) Where the original calculations did not show that the Secretary of
25State was to make a payment to a relevant authority, but the
revised calculations show that the Secretary of State is to make a
payment to the authority—

(a) the Secretary of State must make that payment to the
authority, and

(b) 30the Secretary of State must make a payment to the
authority of an amount equal to the amount of the
payment shown by the original calculations as falling to be
made by the authority to the Secretary of State.

(11) A payment by a relevant authority to the Secretary of State under
35sub-paragraph (1)—

(a) must be made on or before such day in the year to which
the local government finance report relates, and in such
manner, as the Secretary of State may specify, and

(b) if not made on or before that day, is recoverable in a court
40of competent jurisdiction.

(12) A payment by the Secretary of State to a relevant authority under
sub-paragraph (2) must be made—

(a) in instalments of such amounts, and

(b) at such times in the year to which the local government
45finance report relates,

as the Secretary of State determines with the Treasury’s consent.

(13) A payment by a relevant authority to the Secretary of State under
sub-paragraph (6) or (7)—

(a) must be made on or before such day after the end of the
year to which the local government finance report relates,
and in such manner, as the Secretary of State may specify,
and

(b) 5if not made on or before that day, is recoverable in a court
of competent jurisdiction.

(14) A payment by the Secretary of State to a relevant authority under
sub-paragraph (9) or (10) must be made—

(a) at such time, or

(b) 10in instalments of such amounts and at such times,

as the Secretary of State determines with the Treasury’s consent;
but any such time must fall after the end of the year to which the
local government finance report relates.

Amending reports

15 (1) 15After a local government finance report has been made, the
Secretary of State may, at any time before the end of the year
following the year to which the report relates, make in relation to
the report one or more amending reports under this paragraph.

(2) An amending report under this paragraph must contain
20amendments to the basis of calculation specified in the local
government finance report.

(3) Before making the report, the Secretary of State must notify such
representatives of local government as the Secretary of State
thinks fit of the general nature of the amendments the Secretary of
25State proposes to make.

(4) The Secretary of State must lay, or make arrangements for laying,
the report before the House of Commons.

(5) As soon as is reasonably practicable after the report is laid before
the House of Commons, the Secretary of State must send a copy of
30the report to each relevant authority.

(6) Where an amending report under this paragraph has been
approved by resolution of the House of Commons, the Secretary
of State may not make a subsequent amending report under this
paragraph in relation to the same local government finance report.

35Calculations following amending report

16 (1) This paragraph applies if an amending report for a year made
under paragraph 15 is approved by resolution of the House of
Commons.

(2) As soon as is reasonably practicable after the amending report has
40been approved, the Secretary of State must—

(a) calculate which relevant authorities are to make payments
under this Part of this Schedule to the Secretary of State for
the year,

(b) calculate which relevant authorities are to receive
payments under this Part of this Schedule from the
Secretary of State for the year, and

(c) calculate the amount of each payment within paragraph
5(a) or (b).

(3) Subject as follows, the Secretary of State may make one further set
of calculations of the kind described in sub-paragraph (2).

(4) The power to make a further set of calculations under sub-
paragraph (3) is not exercisable after whichever is the later of—

(a) 10the end of the year following the year to which the
amending report relates, and

(b) the end of the period of 3 months beginning with the day
on which the amending report is approved by resolution of
the House of Commons.

(5) 15Calculations under this paragraph must be made in accordance
with the basis of calculation specified in the local government
finance report as amended by the amending report.

(6) As soon as is reasonably practicable after making calculations
under sub-paragraph (2) or (3), the Secretary of State must notify
20each relevant authority of—

(a) whether any payments are to be made by the authority to
the Secretary of State in accordance with the calculations,

(b) whether any payments are to be made to the authority by
the Secretary of State in accordance with the calculations,
25and

(c) if any payments are to be made by or to the authority, the
amount of each payment.

Payments following amending report

17 (1) This paragraph applies if calculations (“the revised calculations”)
30are made under paragraph 16(2) or (3) for a year.

(2) In this paragraph “the relevant previous calculations” means the
last calculations of the kind referred to in paragraph 13(2) or (3) or
16(2) made for the year.

(3) Sub-paragraph (4) applies where—

(a) 35a payment shown by the revised calculations as falling to
be made by a relevant authority to the Secretary of State
exceeds that shown as falling to be made by the relevant
previous calculations, or

(b) a payment shown by the revised calculations as falling to
40be made by the Secretary of State to a relevant authority is
less than that shown as falling to be made by the relevant
previous calculations.

(4) The authority must make a payment to the Secretary of State of an
amount equal to the difference.

(5) 45Where the relevant previous calculations did not show that a
relevant authority was to make a payment to the Secretary of State,

but the revised calculations show that the authority is to make a
payment to the Secretary of State—

(a) the authority must make that payment to the Secretary of
State, and

(b) 5the authority must make a payment to the Secretary of
State of an amount equal to the amount of the payment
shown by the relevant previous calculations as falling to be
made by the Secretary of State to the authority.

(6) Sub-paragraph (7) applies where—

(a) 10a payment shown by the revised calculations as falling to
be made by a relevant authority to the Secretary of State is
less than that shown as falling to be made by the relevant
previous calculations, or

(b) a payment shown by the revised calculations as falling to
15be made by the Secretary of State to a relevant authority
exceeds that shown as falling to be made by the relevant
previous calculations.

(7) The Secretary of State must make a payment to the authority of an
amount equal to the difference.

(8) 20Where the relevant previous calculations did not show that the
Secretary of State was to make a payment to a relevant authority,
but the revised calculations show that the Secretary of State is to
make a payment to the authority—

(a) the Secretary of State must make that payment to the
25authority, and

(b) the Secretary of State must make a payment to the
authority of an amount equal to the amount of the
payment shown by the relevant previous calculations as
falling to be made by the authority to the Secretary of State.

(9) 30A payment by a relevant authority to the Secretary of State under
this paragraph—

(a) must be made on or before such day after the end of the
year in which the amending report was made, and in such
manner, as the Secretary of State may specify, and

(b) 35if not made on or before that day, is recoverable in a court
of competent jurisdiction.

(10) A payment by the Secretary of State to a relevant authority under
this paragraph must be made—

(a) at such time, or

(b) 40in instalments of such amounts and at such times,

as the Secretary of State determines with the Treasury’s consent;
but any such time must fall after the end of the year in which the
amending report was made.

Relationship with other provisions

18 45This Part is subject to Parts 9 (pooling of authorities) and 10
(designation of areas and classes of hereditament).

Part 6 Levy accounts

Levy accounts

19 (1) The Secretary of State must, for each year, keep an account, to be
5called a “levy account”.

(2) Each such account must be kept in accordance with the provisions
of this Schedule that apply to a levy account.

(3) The Secretary of State—

(a) must keep each such account in such form as the Treasury
10may direct, and

(b) must, at such time as the Treasury may direct, send copies
of each such account to the Comptroller and Auditor
General.

(4) The Comptroller and Auditor General—

(a) 15must examine, certify and report on any account of which
copies are sent to the Comptroller and Auditor General
under sub-paragraph (3), and

(b) must arrange for copies of the account and of the
Comptroller and Auditor General’s report on it to be laid
20before each House of Parliament.

Credits and debits

20 (1) For each year the following are to be credited (as items of account)
to the levy account kept for the year—

(a) amounts received by the Secretary of State in the year
25under paragraph 24 (levy payments), and

(b) amounts received by the Secretary of State in the year
under regulations under paragraph 28 (payments on
account).

(2) If a local government finance report for a year has been approved
30by resolution of the House of Commons, and that report provides
for an amount to be credited to the levy account kept for the year,
that amount may be credited (as an item of account) to that
account.

(3) For each year the following are to be debited (as items of account)
35to the levy account kept for the year—

(a) payments made by the Secretary of State in the year under
paragraph 27 (safety net payments),

(b) payments made by the Secretary of State in the year under
regulations under paragraph 28, and

(c) 40payments made by the Secretary of State in the year under
paragraph 30 (distribution of remaining balance).

End of year calculations

21 (1) As soon as is reasonably practicable after the end of each year, the
Secretary of State must calculate—

(a) the aggregate of the items of account credited to the levy
5account kept for the year, and

(b) the aggregate of the items of account debited to the levy
account kept for the year.

(2) If the aggregate mentioned in sub-paragraph (1)(a) exceeds that
mentioned in sub-paragraph (1)(b), an amount equal to the excess
10must be—

(a) debited (as an item of account) to the levy account kept for
the year, and

(b) credited (as an item of account) to the levy account kept for
the next year.

(3) 15If the aggregate mentioned in sub-paragraph (1)(b) exceeds that
mentioned in sub-paragraph (1)(a), an amount equal to the excess
must be—

(a) credited (as an item of account) to the levy account kept for
the year, and

(b) 20debited (as an item of account) to the levy account kept for
the next year.

Part 7 Levy payments, safety net payments and distribution of remaining
balance

25Regulations about calculation of levy payments

22 (1) The Secretary of State may by regulations make provision for
calculating—

(a) whether a relevant authority is required to make a
payment under this Part of this Schedule (a “levy
30payment”) to the Secretary of State for a year, and

(b) if so, the amount of the levy payment.

(2) The regulations must make provision for calculations for a year to
be made after the end of that year.

(3) The regulations may, in particular, make provision for
35calculations in relation to a relevant authority to be made—

(a) if the relevant authority is a billing authority, by reference
to the total payable to it in respect of the year under
sections 43 and 45, subject to such adjustments as may be
specified in the regulations;

(b) 40if the relevant authority is a major precepting authority, by
reference to the total of the amounts payable in respect of
the year under those sections to the billing authorities that
are required to make payments to it for the year under
regulations under paragraph 9, subject to such
45adjustments as may be specified in the regulations;

(c) by reference to payments of a kind specified in the
regulations made to the authority by the Secretary of State;

(d) by reference to such other factors as may be specified in the
regulations.

(4) 5The regulations may, in particular, make provision for
adjustments to an amount calculated under provision made under
sub-paragraph (3) by reference to changes affecting the calculation
of such an amount for an earlier year but not taken into account in
that calculation.

10Calculation of levy payments

23 (1) The Secretary of State must calculate in relation to each relevant
authority—

(a) whether it is required to make a levy payment for a year,
and

(b) 15if so, the amount of that payment.

(2) The calculation must be made—

(a) as soon as is reasonably practicable after the end of the
year, or

(b) if the authority is subject to a requirement imposed by a
20direction under paragraph 43 (direction to make
calculations or supply information) or by or under
regulations under paragraph 44 (regulations about
calculations and supply of information) for the purposes of
this paragraph, as soon as is reasonably practicable after
25the time for compliance with that requirement,

whichever is the later.

(3) The calculation must be made in accordance with regulations
under paragraph 22.

(4) As soon as is reasonably practicable after making a calculation in
30relation to a relevant authority, the Secretary of State must notify
that authority of—

(a) whether, in accordance with the calculation, it is required
to make a levy payment for the year, and

(b) if so, the amount of that payment in accordance with the
35calculation.

Levy payments following calculations

24 (1) If a calculation under paragraph 23 shows that a levy payment is
to be made to the Secretary of State by a relevant authority, the
authority must make that payment to the Secretary of State.

(2) 40The levy payment—

(a) must be made on or before such day and in such manner
as the Secretary of State may specify, and

(b) if not made on or before that day, is recoverable in a court
of competent jurisdiction.

Regulations about calculation of safety net payments

25 (1) The Secretary of State may by regulations make provision for
calculating—

(a) whether the Secretary of State is required to make a
5payment under this Part of this Schedule (a “safety net
payment”) to a relevant authority for a year, and

(b) if so, the amount of the payment.

(2) The regulations must make provision for calculations for a year to
be made after the end of that year.

(3) 10The regulations may, in particular, make provision for
calculations in relation to a relevant authority to be made—

(a) if the relevant authority is a billing authority, by reference
to the total payable to it in respect of the year under
sections 43 and 45, subject to such adjustments as may be
15specified in the regulations;

(b) if the relevant authority is a major precepting authority, by
reference to the total of the amounts payable in respect of
the year under those sections to the billing authorities that
are required to make payments to it for the year under
20regulations under paragraph 9, subject to such
adjustments as may be specified in the regulations;

(c) by reference to payments of a kind specified in the
regulations made to the authority by the Secretary of State;

(d) by reference to such other factors as may be specified in the
25regulations.

(4) The regulations may, in particular, make provision for
adjustments to an amount calculated under provision made under
sub-paragraph (3) by reference to changes affecting the calculation
of such an amount for an earlier year but not taken into account in
30that calculation.

Calculation of safety net payments

26 (1) The Secretary of State must calculate in relation to each relevant
authority—

(a) whether the Secretary of State is required to make a safety
35net payment to the authority for the year, and

(b) if so, the amount of that payment.

(2) The calculation must be made—

(a) as soon as is reasonably practicable after the end of the
year, or

(b) 40if the authority is subject to a requirement imposed by a
direction under paragraph 43 (direction to make
calculations or supply information) or by or under
regulations under paragraph 44 (regulations about
calculations and supply of information) for the purposes of
45this paragraph, as soon as is reasonably practicable after
the time for compliance with that requirement,

whichever is the later.

(3) The calculation must be made in accordance with regulations
under paragraph 25.

(4) As soon as is reasonably practicable after making a calculation
under this paragraph in relation to a relevant authority, the
5Secretary of State must notify that authority of—

(a) whether, in accordance with the calculation, the Secretary
of State is required to make a safety net payment to the
authority for the year, and

(b) if so, the amount of that payment in accordance with the
10calculation.

(5) This paragraph is subject to regulations under paragraph 28
(payments on account).

Safety net payments following calculations

27 (1) If a calculation under paragraph 26 shows that a safety net
15payment is to be made by the Secretary of State to a relevant
authority, the Secretary of State must make that payment to the
authority.

(2) The safety net payment must be made in instalments of such
amounts, and at such times, as the Secretary of State determines
20with the Treasury’s consent.

(3) This paragraph is subject to regulations under paragraph 28
(payments on account).

Regulations about payments on account

28 (1) The Secretary of State may by regulations make provision—

(a) 25for a relevant authority to request the Secretary of State to
make a calculation before the end of a year of—

(i) whether the Secretary of State is likely to be
required to make a safety net payment under
paragraph 27 to the authority for the year, and

(ii) 30if so, the amount of the payment;

(b) about the time at which and the manner in which a request
must be made, and the information that must be provided
in connection with the request;

(c) about the circumstances in which the Secretary of State
35may or must make a calculation in response to a request;

(d) about the making of the calculation, including for the
Secretary of State to make the calculation by reference to
estimates of any of the amounts mentioned in paragraph
25(3).

(2) 40The regulations may make provision—

(a) about the timing of a calculation in response to a request;

(b) about the notification of the results of the calculation to the
relevant authority to whom it relates;

(c) for the making, as a result of the calculation, of a payment
45(a “payment on account”) to the authority before the end of
the year to which the calculation relates.

(3) The regulations may, in particular—

(a) make provision in relation to a calculation that is similar to
that made by paragraph 26, or apply that paragraph with
modifications in relation to such a calculation;

(b) 5make provision in relation to a payment on account that is
similar to that made by paragraph 27, or apply that
paragraph with modifications in relation to such a
payment.

(4) The regulations may make provision—

(a) 10about the calculation under paragraph 26 to be made in
relation to a relevant authority for a year where a payment
on account has been made to the authority for the year;

(b) for the making of a further payment by the Secretary of
State to the authority, or of a payment by the authority to
15the Secretary of State, as a result of that calculation.

Calculation of remaining balance on levy account

29 (1) The Secretary of State must, in each year other than the first year
for which the levy account is kept, calculate whether there is a
remaining balance on the levy account for the year in accordance
20with sub-paragraphs (2) to (4).

(2) The calculation must be made as soon as is reasonably practicable
after—

(a) all of the calculations required by paragraph 23(1)
(calculations of levy payments) have been made for the
25previous year,

(b) all of the calculations required by paragraph 26(1)
(calculations of safety net payments) have been made for
the previous year, and

(c) all of the calculations required by regulations under
30paragraph 28 (calculations of safety net payments on
account) have been made for the year.

(3) The calculation must be made as follows—

Step 1

Calculate the aggregate of the amounts of all of the levy payments
35calculated for the previous year under paragraph 23(1).

Step 2

Add any amount credited to the levy account for the year in
accordance with paragraph 21(2) (credit from previous year) to the
amount found under step 1, or subtract any amount debited to
40that account in accordance with paragraph 21(3) (debit from
previous year) from the amount found under step 1.

Step 3

Add to the amount found under steps 1 and 2 any amount
credited to the levy account for the year in accordance with
45paragraph 20(2) (credit in accordance with local government
finance report).

Step 4